The EUR/USD pair has continued to slide lower, approaching the key level of 1.0550. The Euro is struggling to find support in the broader FX market as the Greenback gains strength. Investors are closely watching for updates on EU GDP and US PPI inflation, which are due to be released on Thursday.
US CPI inflation figures came in as expected, with both headline and core CPI meeting market forecasts. Despite a slight increase in annualized CPI inflation, investor sentiment remains positive. Euro traders are now awaiting the release of pan-EU Gross Domestic Product growth figures on Thursday. Final GDP growth in the third quarter is expected to remain stable, with EUR bulls hoping for a positive outcome.
The upcoming US PPI inflation data is forecasted to show an acceleration in October. The EUR/USD daily chart reflects a bearish trend, with the pair trading below key moving averages. The MACD indicator confirms the bearish momentum, with potential support at the 1.0550 level. A break below this level could lead to further declines, while a move above the 200-day EMA is needed to signal a more bullish outlook.
The Euro is the currency for 19 European Union countries and is the second most traded currency in the world. The European Central Bank in Frankfurt, Germany, manages monetary policy and sets interest rates to maintain price stability. Eurozone inflation data, along with economic indicators such as GDP and trade balance, can influence the value of the Euro. Strong economic data can attract foreign investment and potentially lead to a rate hike by the ECB, strengthening the Euro.
Overall, the EUR/USD pair faces continued downward pressure as the Euro struggles to find support. Key economic data releases on Thursday will be crucial in determining the pair’s direction. Traders will be watching for any signs of a reversal in the bearish trend, with a break above the 200-day EMA needed to signal a more positive outlook for the Euro. Until then, the technical setup remains bearish, with potential further downside if the 1.0550 support level is breached.
